The US Pet Industry has been growing over the last two decades at an overwhelming rate. Currently, the industry has total revenue of $15.9bn with an annual growth rate of 3.4% since 2008. The projected growth rate for the next five years from 2013 has been set at 4.0%. The profits from this industry have been recorded at $555.4bn for the year 2013. The wages and salaries resulting from this industry have been recorded at $2.1bn while the total number of established and businesses have been recorded at 13,470 for the year 2013 (PetPR, 2012). The number of pets in the US has been increasing significantly especially among the baby boomers and the young generation who have no intention of setting up families and want to concentrate on a career. These changing lifestyles gave led to the population seeking companions at home. Pets have been the best option for the great part of the population. Currently, more than 82.5 million homes (62%) in the US have a pet (Frei, C., 2013).
This growth in the industry has been occasioned by the growing presence of the pet industry within the online market. The pet owners, business entities involved in the pet industry both at retail and wholesale level together with the pet products manufacturers and suppliers have all contributed to this overwhelming presence on the internet. Organizations such as the American Pet Products Manufacturers Association (APPMA) have been able to reach a greater mass of the population through their online marketing strategies. Retailers and wholesalers such as Petsmart and PETSCO have increased their presence in the online media (American Pet Products Association, Inc, 2014).
This presence has not facilitated business activities within this industry but also increased the volume of information available to the potential pet owners. The consumer reviews, available through the pet related sites such as Petsmart, PETSCO and APPMA websites have encouraged more buyers. This has necessitated the need for pet products manufacturing companies to try as much as possible to reach the ever increasing number of customers (HomeAgain, 2010). This coupled with the internal competition between the pet sellers, pet-products sellers and related industries such as the veterinary services has necessitated the need to reach the customers. This has led to a boom in the industry (Frei, C., 2013).
The social media such as face-book and twitter, on the other hand, have been used to reach the customers and engage with them. This close association between the stakeholders from far flung areas has led to increased exposure. With this exposure, there has been more curiosity among potential and current owners to try new trends in the pet industry. The curiosity has led to increased transactions within the industry.
The online presence of pet–industry stakeholders has led to the formation of associations that have enabled them advocate for favorable and effective legislative measures related to the industry. These associations have strengthened over time to become so influential with an ability to organize awards and seminars to sensitize and enlighten the pet keepers on issues in the pet industry (Frei, C., 2013). The APPMA for instance has been influential in this sector. The Global Pet Expo is an example of an initiative funded by the APPMA to bring all stakeholders together to market their products to the potential customers. These events have strengthened the industry in all aspects. It has strengthened its economic value to the US economy thus gaining a negotiating voice to address their concerns on legal and administrative issues that affect the industry (EURO MONITOR INTERNATIONAL, 2014).
The industry has also been able to link with international customers and related industries. This presence on the international stage has not only increased the customer base but has also facilitated the exchange of ideas with pet industries from other nations that have improved quality of products and pet-care.
References
American Pet Products Association, Inc (2014). Pet Industry Market Size & Ownership Statistics. Retrieved from http://www.americanpetproducts.org/press_industrytrends.asp
EURO MONITOR INTERNATIONAL (2014). Pet Care and Pet Food Industry Analysis, Market Research, Market Share, Statistics. Retrieved from http://www.euromonitor.com/pet-care
Frei, C. (2013, June 4). 20 Great Stats About Pet Industry Trends. Retrieved from http://www.slideshare.net/cfreis/sizzling-stats-pet-outlook-22446967
HomeAgain (2010). HomeAgain. Retrieved from http://public.homeagain.com/pdf/microchipping-whitepaper.pdf
IBISWorld Industry (2013, September). Market Research Reports | Procurement Research Reports | IBISWorld US. Retrieved from http://www.ibisworld.com
PetPR (2012, April 4). Packaged Facts Releases U.S. Pet Market Outlook 2012-2013 | PetPRPetPR. Retrieved from http://www.petpr.com/news/packaged-facts-releases-u-s-pet-market-outlook-2012-2013/
